An equity member in a limited liability partnership (LLP) enjoys a fixed share in the business and is entitled to a proportion of the distributable profits.

An LLP can have different classes of members. While each person is treated in a similar manner, having a limited amount of liability and being taxed as individuals, it is possible to have varied types of members including fixed share members, salaried members and full equity members.

Designating equity members

Companies House makes no distinction between different classes of members upon registration. It only requires that there are at least two designated members, who make certain that all necessary forms are filed throughout the partnership.

Therefore, a limited liability partnership agreement must be drawn up to identify different member types within an LLP. This deed allows you to address the rights, responsibilities and obligations of each individual, while also outlining the share of profits to which each member is entitled.

Ralli Partnership Law can offer specialist advice on the roles and responsibilities of the members of your limited liability partnership. Our experienced solicitors are also able to draft up a watertight LLP agreement that allows you to regulate your business and clearly define the role of each member.

For further information on our legal services, contact Ralli Partnership Law on 0161 832 6131. Whether you want advice on equity members for your LLP, or want to know more about including a fixed share partner or salaried partner in your partnership, our solicitors can advise on the best course of action.